If you have a good credit score, you can apply for an interest free Credit card. With a 0% interest card, you can make purchases without paying any interest for a set number of months. If used correctly, a 0% card is cheaper than getting a loan. An interest-free card is also useful if you want to pay down a high interest credit card debt. If you are in debt, interest, and penalties can make it difficult to pay your loan back in a timely manner.
Fortunately, you can make a credit card balance transfer to a 0% spending card thus reducing your debt. However, you need to make your payment before the set time expires. Most interest-free cards offer a 0% introductory interest rate of up to 18 months. When deciding to use a credit card, it is vital to know what kind of spender you are and your financial situation. Such reasons will help you decide on whether a credit card is right for you. Read on to discover conditions when getting a credit card is a good idea.
1. Emergency
No one can tell when a crisis is about to occur, and not everyone has saved some money for emergencies. Paying an interest of about 15% is better than getting a loan to settle a crisis. Some banks will have an interest rate of almost 30%, and you pay it within a longer duration compared to credit. Banks will also take longer to approve and process your loan.2.Building your Credit History.
If you want to create a good credit history, getting a credit card is the best way. Making small purchases and paying them off will improve your credit score. Without a good credit score, it can be difficult to secure other loans, insurances, or get employed. Getting a credit card and making timely payments will ensure that you have a good credit history.3. Car rental.
Most car rentals require that you have a credit card to rent their car. Some may allow you to use your debit card, but they will lock up a substantial amount until you return the vehicle. A credit card provides additional liability when you rent a car.4. Convenience
No one likes to carry large amounts of money with them since you may lose it or have it stolen. With a credit card, you can take it in your wallet, and offers better consumer protection. Additionally, online stores prefer using credit cards as their payment method, especially when buying expensive items.Make sure you are a disciplined spender to enjoy the benefits of using a credit card. Remember that you have to pay the monthly bill by the due date.
About the Editorial TeamThe Editorial Team of MyBloggerLab consists of a group of Professional Blogger geeks Led by Syed Faizan Ali (Founder of MyBloggerLab).
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